Project Everest

Proposed Experiment

[Proposed Experiment]: Channels - Chief Agents: Measuring Default Rates of Payment Plan Customers - Solar Malawi July 2019

Lean phase: 

Channels

 

Background information: 

Part of the reasoning behind utilising chiefs as sales agents is to lower the risk of defaulting customers on payment plans as the chief would be the guarantor and has more means to follow up on repayments. Additionally, customers would be members of the village of the chief and will be more motivated in making repayments due to having a personal connection and the social pressure of the community.

 

A number of payment plan sales were made through Chief Agents in July 2019, therefore these customers should be completing their final payments in December 2019 which provides a good opportunity to test our assumptions.

 

This experiment is a subset of the Chief Agents experiment.

 

Assumption: 

 

Chief Agents are able to effectively keep track and chase up repayments, thus lowering default rates of payment plan customers.

 

Time Box: N/A - this experiment requires collection of data at a certain point in time.

 

Success Metric: Percentage of Chief Agent payment plan customers who have completed all their repayments on time.

 

Criteria:

 

Green Light: 

Continue utilising chiefs as agents. Expand network of Chief Agents.

 

Success point: 90% of customers on payment plans (through Chief Agents) completing their repayments on time.

 

Orange Light:

Speak to Chief Agents to find out reasons for customers defaulting (eg. customer circumstances, losing information/documents, chief’s not actively chasing up). Remind chiefs that as guarantor they are meant to make repayments in the case of customers defaulting (however do not enforce yet). Ask chiefs to follow up on customers to complete repayments. Provide further training and resources to chiefs as necessary to better understand how to process payments and requirements for following up on repayments.

 

Failure point: 50% of customers on payment plans (through Chief Agents) completing their repayments on time.

 

Red Light:

Speak to Chief Agents to find out reasons for customers defaulting (eg. customer circumstances, losing information/documents, chief’s not actively chasing up). Remind chiefs that as guarantor they are meant to make repayments in the case of customers defaulting (however do not enforce yet). Ask chiefs to follow up on customers to complete repayments. If chiefs are not able to collect repayments, consider the circumstances and reasons for customers defaulting and discuss with TL and SL’s about enforcing partial repayments from chief. Investigate each Chief Agent on a case by case basis to determine whether there is still potential as an agent or not. If there is, provide training and resources as required. If not, discontinue use of that Chief Agent. Develop a more effective process of training, processing and tracking repayments for the chief. 



Experiment Build

  1. Find customers who bought our product through Chief Agents who are due to have completed all of their repayments (separating by which Chief Agent was used)

  2. Look at CRM to check each customer’s payment status and fill out Chief Agents: Measuring Default Rates of Payment Plan Customers Spreadsheet. (Data can be found by looking for payment plan customers with the Chief Agent as the guarantor).

    1. If CRM is not functioning correctly, information can be found here.

  3. Calculate the success metric in the spreadsheet, as well as metrics for each individual Chief Agent.

  4. Include a written summary of findings, in particular any trends or special considerations that need to be considered in experiment results.

Tagged users

Grace Blackford 5 months ago

Status label added: Proposed Experiment

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